Lease vs Buy Calculator

Compare the costs of leasing versus buying a car. Calculate monthly payments, total costs, and determine which option is better for your budget and lifestyle with our comprehensive auto finance calculator.

Lease vs Buy Comparison

Enter your vehicle and financing details to compare leasing vs buying costs

Vehicle Information

Vehicle Price ($)

Down Payment for Purchase ($)

Lease Details

Monthly Lease Payment ($)

Lease Term (months)

Lease Down Payment ($)

Annual Mileage Limit

Your Annual Mileage

Excess Mileage Fee (per mile)

Estimated Wear & Tear Fee ($)

Buy Details

Loan Interest Rate (%)

Loan Term (months)

Expected Resale Value ($)

Key Features

Compare lease vs buy total costs

Calculate excess mileage and wear fees

Analyze monthly payment differences

Consider depreciation and resale value

Detailed cost breakdown and analysis

Understanding Lease vs Buy

Leasing: Lower monthly payments, no ownership, mileage restrictions

Buying: Higher monthly payments, full ownership, no restrictions

Depreciation: Buying bears depreciation risk, leasing doesn't

Equity: Buying builds equity, leasing provides no equity

Lease vs Buy Tips

Choose Lease If: You want lower payments and latest features

Choose Buy If: You drive a lot or want to build equity

Mileage Matters: Excess mileage fees can be expensive

Consider Total Cost: Include all fees and depreciation

Gap Insurance: Consider gap insurance for loans

How to Use the Lease vs Buy Calculator

Step-by-Step Instructions

1Enter your vehicle's purchase price and your planned down payment for buying
2Input lease details including monthly payment, term, down payment, and mileage limits
3Add buying details: loan interest rate, loan term, and estimated resale value after ownership
4Include any expected excess mileage and wear & tear fees for the lease option
5Click "Compare Options" to see detailed cost analysis and recommendation

Pro Tips

💡Realistic Resale Values: Use KBB or Edmunds to estimate your car's value after the loan term
🔧Include All Costs: Factor in maintenance, insurance differences, and potential lease-end fees
📋Mileage Matters: Be honest about your driving habits - excess mileage fees add up quickly
💰Consider Total Cost: Look beyond monthly payments to total ownership cost over time
🎯Tax Implications: Lease payments may be tax-deductible for business use

Frequently Asked Questions

Is it better to lease or buy a car?

It depends on your situation. Leasing offers lower monthly payments and always driving newer cars, while buying builds equity and has no mileage restrictions. Consider your budget, driving habits, and long-term goals.

What are the main advantages of leasing?

Lower monthly payments, always driving a newer car with latest features, warranty coverage, and no worries about depreciation or selling the car.

What are the main advantages of buying?

You build equity, have no mileage restrictions, can modify the car, and don't have to worry about wear and tear charges. You also have the option to sell whenever you want.

What happens if I exceed the mileage limit on a lease?

You'll pay excess mileage fees, typically $0.10-$0.25 per mile over the limit. These fees can add up quickly, so it's important to estimate your annual mileage accurately.

Can I buy the car at the end of a lease?

Most leases include a purchase option at the end of the lease term. The purchase price is typically set at the beginning of the lease and is based on the car's expected residual value.

What costs should I consider beyond monthly payments?

For leasing: down payment, excess mileage fees, wear and tear charges, and early termination fees. For buying: down payment, interest, insurance, maintenance, and depreciation.

How do I estimate my car's resale value?

Use resources like Kelley Blue Book, Edmunds, or similar automotive guides. Consider factors like make, model, age, mileage, condition, and market demand. Luxury cars typically depreciate faster.

Should I consider gap insurance?

Gap insurance is recommended for both leasing and buying with a loan, especially with small down payments. It covers the difference between what you owe and the car's value if it's totaled or stolen.